Nikkei Retreats From Milestone
Japan's Nikkei Slips From Early Highs After Briefly Surpassing 67,000
Anonymous
Japan’s Nikkei 225 erased early gains and ended Monday morning slightly lower at 66,333.53, after briefly climbing above 67,000 for the first time since Aug. 18. Buying followed a rally in U.S. stocks, especially technology and semiconductor shares, but investors took profits after the index had gained nearly 3,000 points over five sessions, while softer Nasdaq futures and caution ahead of Micron’s results weighed on sentiment. TOPIX moved higher, and sector performance was mixed, with banks and insurers among the gainers and pharmaceutical and metal-product shares among the decliners. Dividend-related buying was expected to offer some support later in the week.
Key Points
1
The Nikkei reached 67,034.74 at 10:17 a.m., its first move above 67,000 since Aug. 18.
2
A source at a major Japanese brokerage said the index’s rapid rise was creating resistance near 67,000.
3
Monday was the final session to trade with dividend rights for September fiscal year-end companies; estimates put possible futures buying tied to dividend reinvestment at about ¥1.6 trillion (roughly $10.1 billion).
4
The initial buying was also supported by falling crude prices and lower long-term U.S. interest rates, alongside the rally in U.S. shares.
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